Usage of the word settle (settling vs settled)

1. Many birds and animals are found settled only on this land.
2. Many birds and animals are found settling only on this land.

Are they both correct? If so, what’s the difference between them?

Many many thanks in advance.

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‘Settle’ is an inappropriate word for animals (and also, birds are animals). Write this: Many animals are found inhabiting only this region. The -ed form is wrong in this construction.

A better statement would be: Many species are endemic to this region.
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Thank you, Mister Micawber. You’ve always been my teacher.